American River Bankshares Reports Third Quarter 2018 Results.
M2 PRESSWIRE-October 19, 2018-: American River Bankshares Reports Third Quarter 2018 Results
(C)1994-2018 M2 COMMUNICATIONS
RDATE:18102018
Sacramento, CA - American River Bankshares (NASDAQ-GS: AMRB) today reported net income of $1.2 million, or $0.20 per diluted share for the third quarter of 2018 compared to $1.1 million, or $0.17 per diluted share for the third quarter of 2017. For the nine months ended September 30, 2018, net income was $3.8 million or $0.64 per diluted share, compared to $3.6 million or $0.55 per diluted share for the nine months ended September 30, 2017.
"We are pleased to see positive results of our plan coming to fruition," said David E. Ritchie, Jr., President and CEO of American River Bankshares. "This is our second consecutive quarter where we have experienced strong loan commitment totals. Following the $30 million in new loan commitments reported during the second quarter of 2018, we recorded an additional $40 million in loan commitments during the most recent quarter." Ritchie continued, "These commitments resulted in an increase in loans outstanding by nearly $20 million during the quarter. It is also worth noting that we experienced an increase in the net interest margin from 3.36% to 3.44% when compared to last quarter."
Financial Highlights
o During the third quarter of 2018, net loans increased $19.8 million (6.8%) and core deposits decreased $5.3 million (1.1%). Net loans decreased $11.9 million (3.7%) from September 30, 2017 to September 30, 2018. Core deposits increased $28.1 million (6.0%) from September 30, 2017 to September 30, 2018.
o The net interest margin for the third quarter of 2018 was 3.44%, compared to 3.32% for the third quarter of 2017. The net interest margin for the nine months ended September 30, 2018 was 3.36%, compared to 3.39% for the nine months ended September 30, 2017.
o Net interest income was $5.3 million in the third quarter of 2018, compared to $4.8 million in the third quarter of 2017. For the nine months ended September 30, 2018, net interest income was $15.1 million, compared to $14.5 million for the nine months ended September 30, 2017.
o The allowance for loan and lease losses was $4.3 million (1.38% of total loans and leases) at September 30, 2018, compared to $4.6 million (1.39% of total loans and leases) at September 30, 2017. Nonperforming loans decreased from $2.3 million at September 30, 2017 to $376,000 at September 30, 2018. The allowance for loan and lease losses was 11.52 times the nonperforming loans and leases at September 30, 2018, compared to 1.96 times at September 30, 2017.
o Shareholders' equity was $71.7 million at September 30, 2018 compared to $82.3 million at September 30, 2017. Tangible book value per share was $9.45 at September 30, 2018 compared to $10.31 at September 30, 2017. Book value per share was $12.23 at September 30, 2018 compared to $12.87 at September 30, 2017.
o There were no repurchases of common stock during the most recent quarter. For the first nine months of 2018, the Company repurchased a total of 298,778 shares at an average price of $15.53 per share. The Company has nearly completed the 2018 Stock Repurchase Program, which allowed for the purchase of up to 306,618 shares of common stock during 2018. The Company continued the quarterly cash dividend by paying a $0.05 per share cash dividend on August 15, 2018.
o The Company continues to maintain strong capital ratios. At September 30, 2018 the Leverage ratio was 9.0% compared to 10.3% at September 30, 2017; the Tier 1 Risk-Based Capital ratio was 16.6% compared to 18.8% at September 30, 2017; and the Total Risk-Based Capital ratio was 17.9% compared to 20.0% at September 30, 2017.
Northern California Economic Update, September 30, 2018.
Each quarter, management at American River Bank prepares an economic report for internal use that analyzes the recent historical rolling quarters within the three primary markets in which the Company does business - Greater Sacramento Area and Sonoma and Amador Counties. Sources of economic and industry information include: Colliers International, Keegan & Coppin Company, Inc., ycharts/housing, State of California Employment Development Department, US Census, CBRE, Integra Realty Resources, and Sacramento Association of Realtors and Trading Economics.
Commercial real estate and employment data continued to be positive in the markets we serve.
Commercial Real Estate. In the Greater Sacramento Area, when comparing fourth quarter 2017 to fourth quarter 2016, commercial real estate vacancies improved in all segments. Office vacancy decreased from 11.6% to 10.8%, retail vacancy decreased from 10.3% to 9.1%, and industrial vacancy decreased from 8.1% to 5.9%. As of second quarter 2018, Sacramento area vacancy rates for all three segments decreased further to 10.4% for office, 9.0% for retail, and 4.8% for industrial.
In Sonoma County, when comparing fourth quarter 2017 to fourth quarter 2016, commercial real estate vacancies continued to improve. Office vacancy decreased from 14.7% to 12.5%, retail vacancy remained flat at 3.8%, and industrial vacancy decreased from 5.8% to 4.6%. As of second quarter 2018, Sonoma County's retail and industrial vacancies decreased further to 3.7% and 4.0% respectively, while office vacancies increased slightly to 12.7%.
In all segments (office, retail, and industrial), the Greater Sacramento area reported positive absorption from June 30, 2016 through June 30, 2018. Sonoma County and the City of Santa Rosa also reported (when data is available) positive absorption over this same time period for the office and industrial segments (retail data is not available).
In Greater Sacramento, commercial lease rates have experienced little change from June 30, 2016...
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